2014 Kia Cadenza on 2040-cars

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Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.

Kia pushes back production GT to 2017

A production version of the 2011 Kia GT concept has been delayed a year until 2017, according to a report from Auto Express. Insiders tell the website that the still-unnamed vehicle's styling already has the blessing of design boss Peter Schreyer, and the four-door's shape is similar to the concept, minus the suicide doors. The production version might share a rear-wheel drive platform with the Hyundai Genesis and could include four- and six-cylinder options, plus a V8 at the top of the range. Previous reports suggested that the model would be aimed primarily at the US market with upscale targets like the Audi A7 and Porsche Panamera. Another rear-drive concept from Kia might also actually see the road, because the company is again considering building the GT4 Stinger. "We have very high intentions to put these models into production – we're working on it," Spencer Cho, the South Korean brand's head of overseas marketing, said to Auto Express. No firm plans are in place yet, but if it gets the thumbs up, the sports coupe could come a year or two after the GT. Earlier information indicated that that the two-door was out of favor at the company because sedans offered a rosier sales prognosis. Related Video:

Kia teases K5/Optima again, in two different ways

When Kia teased a drawing of the third-generation K5 sedan for the Korean market — our Kia Optima — the pictured red sedan adopted a fastback shape and detailing somewhere in between evolution and revolution. The South Korean automaker has teased the K5 a second time with two different takes on the next-gen four-door, one of them tipped all the way to the side of revolution, the other presenting a refined evolution. The revolutionary takes (second and third in the gallery above) look as if the spirit of SEMA bled across the Pacific to Seoul. In these two drawings, the K5 has been lowered, widened, given a jutting front fascia rife with intakes, set on giant wheels with rubber-band tires, and slathered in color-shifting violet and lavender paint. The leanness makes the family sedan look more like a coupe, especially from the hippy and winged rear three-quarter.  The evolutionary take (the silver car that's first in the gallery), found on Kia's Korean site, looks more like the car everyone has a chance of getting. The drawing provides a handsome basis for the exaggerations in the other renderings; everything's here from the SEMA-fied version, only toned down. We gather that, on the outside, designers intend to make their statement with the sheetmetal behind the B-pillar. The lines create a fastback profile, stressed by the chrome cradle running from one A-pillar, around the backlight to the other A-pillar. If the shutlines are accurate, the decklid will be split by a dark portion that acts to extend the rear window graphic and a body-colored panel. Racy vents aft of the rear wheels tie into wide chrome exhaust finishers and a prominent, slatted diffuser.  Kia's thrown a lot of copy at what it's going for with the next K5/Optima, talking about the "evolution of dynamics" and noting how this car will turn the "Tiger Grille" into the "Tiger Face." Part of that involves merging elements of the grille and headlights into a more organic piece. The K5 looks like it will adopt a restrained version of the new headlight-grille combination recently shown on the redesigned Hyundai Grandeur (our Azera, no longer on sale here). We'll be seeing more of it in the future.